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R 4515WHEREAS, the City Council of the City of Arroyo Grande desires to establish the Arroyo Grande Tourism Business Improvement District and levy an annual assessment on lodging business, which include hotels, motels, inns, and bed and breakfasts within the proposes AGTBID; and WHEREAS, the Parking and Business Improvement Area Law of 1989 (Streets & Highways Code Sections 36500 et seq.) authorizes cities to establish business improvement area for the purpose of promoting tourism; and WHEREAS, lodging businesses within the proposed AGTBID have requested that the City Council establish such a business improvement area. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande as follows: 1. The recitals set forth herein are true and correct. 2. The City Council hereby declares its intention to establish the Arroyo Grande Tourism Business Improvement District ( "AGTBID ") and to levy and collect annual assessments against lodging businesses within the AGTBID boundaries, pursuant to the Parking and Business Improvement Area Law of 1989, Streets & Highways Code Sections 36500 et seq. (hereinafter referred to as the "Law "), commencing thirty (30) days after adoption of the ordinance required by Streets and Highways Code Section 36527. 3. The boundaries of the AGTBID shall be the boundaries of the City of Arroyo Grande. 4. The name of the business improvement area shall be the "Arroyo Grande Tourism Business Improvement District ". 5. The City Council hereby declares that the types of improvements and activities to be funded by the levy of assessments against lodging businesses within the AGTBID are tourism and marketing programs to promote Arroyo Grande as a tourism destination and projects, programs, and activities that benefit lodging RESOLUTION • I businesses located and operating within the boundaries of the District. The proposed improvements and activities shall be targeted at increasing transient stays. 6. Except where funds are otherwise available, an assessment will be levied annually against lodging businesses to pay for the improvements and activities within the AGTBID commencing thirty (30) days after adoption of the ordinance establishing the AGTBID. Assessments will be collected in quarterly installments or such other installments as determined by the City Council. The proposed assessment is to be levied on all lodging businesses, which include hotels, motels, inns and bed and breakfasts within the AGTBID boundaries, based upon two percent (2 %) of the rent charged by the operator, per occupied room per night for all transient occupancies. Federal government employees on government business will be exempt from the levy of the assessment. Extended stays, defined as more than thirty (30) consecutive calendar days, shall be exempt from the levy of assessment. New lodging businesses within the boundaries of the AGTBID shall not be exempt from the levy of assessment. Assessments levied pursuant to the AGTBID shall not be included in gross room rent revenue for the purpose of determining the amount of the assessment. 7. The City Council hereby sets April 23, 2013 as the date for a public meeting on the establishment of the AGTBID and the levy of assessments and May 14, 2013 as the date for a public hearing on the establishment of the AGTBID and the levy of assessments. Both the pubic meeting and the public hearing will be held at 6:00 p.m., or as soon thereafter as practicable, in the City Council Chambers, located at 215 East Branch Street, Arroyo Grande. 8. At the public meeting and public hearing the testimony of all interested persons for or against the establishment of the AGTBID, the extent of the AGTBID, or the furnishing of specific types of improvements or activities will be heard. A protest may be made orally or in writing by any interested person. However, only written protests will be considered in determining if there is a majority protest. Any protest pertaining to the regularity or sufficiency of the proceedings shall be in writing and clearly state the irregularity or defect to which objection is made. To count in the determination of a majority protest against the AGTBID, a protest must be in writing. Written protests must be received by the City Clerk of the City of Arroyo Grande before the close of the public hearing scheduled herein and may be delivered or mailed to the City Clerk, City of Arroyo Grande, 300 East Branch Street, Arroyo Grande, CA 93420. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. RESOLUTION NO. 4515 Each written protest shall contain a written description of the business in which the person signing the protest is interested sufficient to identify the business. If the person signing the protest is not shown on the official records of the City of Arroyo Grande as the owner of the business, then the protest shall contain or be accompanied by written evidence that the person is the owner of the business. A written protest which does not comply with this section shall not be counted in determining a majority protest. 9. If, at the conclusion of the public hearing, written protests are received from owners of businesses in the proposed AGTBID which will pay fifty percent (50 %) or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protest to less than fifty percent (50 %) (i.e., there is a majority protest), no further proceedings to create the AGTBID, as contained in this Resolution of Intention, shall be taken for a period of one year from the date of the finding of a majority protest by the City Council. If the majority protest is only against the furnishing of a specified type or types of improvement or activity within the AGTBID, those types of improvements or activities shall be eliminated. For purposes of determining the applicable majority protest figure for the initial formation of the district, the proposed assessment to be levied will be calculated based on the assessment rate multiplied by the most recent available data for the lodging operations' gross lodging rent as reported to the City during calendar year 2012. 10. Further information regarding the proposed AGTBID may be obtained from the City Clerk, City of Arroyo Grande, 300 East Branch Street, Arroyo Grande, CA 93420. 11. The City Clerk is instructed to provide notice of the public meeting and public hearing in accordance with law. 12. This Resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify to the vote adopting the Resolution. On motion of Council Member Ray, seconded by Council Member Guthrie, and by the following roll call vote, to wit: AYES: Council Members Ray, Guthrie, Brown, and Mayor Ferrara NOES: None ABSENT: Council Member Costello the foregoing Resolution was passed and adopted this 26th day of February 2013. RESOLUTION NO. 015 TONY F A, MAYOR Fl,fORE, CITY CLERK z , 7 TIMOTHY J. CARMEL, CITY ATTORNEY I, KELLY WETMORE, City Clerk of the City of Arroyo Grande, County of San Luis Obispo, State of California, do hereby certify under penalty of perjury, that the attached Resolution No. 4515 is a true, full, and correct copy of said Resolution passed and adopted at a Regular meeting of the City Council of the City of Arroyo Grande on the 26th day of February, 2013. WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 28th day of February 2013. 0 �edAIA U KELLY WiiTIVI RE, CITY CLERK